Stock Price Reactions to Research and Development News on Pharmaceutical Companies in Japan

T. Imai; F. Takeda

doi:10.1109/IEEM62345.2024.10857115

Stock Price Reactions to Research and Development News on Pharmaceutical Companies in Japan

T. Imai
, F. Takeda

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

Abstract

This study examines the effects of research and development (R&D) on the market value of Japanese pharmaceutical companies. Based on 1,345 news articles, our event study analysis of 74 Japanese pharmaceutical companies from 1 January 2010 to 31 December 2021 revealed three key findings. First, the stock prices of the aforementioned companies generally respond positively to the business news, and more specifically, R&D-related news. Second, the impact on the share price is more pronounced as the R&D progress to more advanced stages. Lastly, the stock price responses to R&D news tend to diminish as the size of pharmaceutical companies increases.

Original language	English
Title of host publication	IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2024
Publisher	IEEE Computer Society
Pages	1119-1123
Number of pages	5
ISBN (Electronic)	9798350386097
DOIs	https://doi.org/10.1109/IEEM62345.2024.10857115
Publication status	Published - 2024
Externally published	Yes
Event	2024 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2024 - Bangkok, Thailand Duration: 2024 Dec 15 → 2024 Dec 18

Publication series

Name	IEEE International Conference on Industrial Engineering and Engineering Management
ISSN (Print)	2157-3611
ISSN (Electronic)	2157-362X

Conference

Conference	2024 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2024
Country/Territory	Thailand
City	Bangkok
Period	24/12/15 → 24/12/18

Keywords

company size
COVID-19
event study
market value
pharmaceutical industry
R&D news
stock price reactions

ASJC Scopus subject areas

Business, Management and Accounting (miscellaneous)
Industrial and Manufacturing Engineering
Safety, Risk, Reliability and Quality

Access to Document

10.1109/IEEM62345.2024.10857115

Cite this

Imai, T., & Takeda, F. (2024). Stock Price Reactions to Research and Development News on Pharmaceutical Companies in Japan. In IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2024 (pp. 1119-1123). (IEEE International Conference on Industrial Engineering and Engineering Management). IEEE Computer Society. https://doi.org/10.1109/IEEM62345.2024.10857115

Stock Price Reactions to Research and Development News on Pharmaceutical Companies in Japan. / Imai, T.; Takeda, F.
IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2024. IEEE Computer Society, 2024. p. 1119-1123 (IEEE International Conference on Industrial Engineering and Engineering Management).

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

Imai, T & Takeda, F 2024, Stock Price Reactions to Research and Development News on Pharmaceutical Companies in Japan. in IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2024. IEEE International Conference on Industrial Engineering and Engineering Management, IEEE Computer Society, pp. 1119-1123, 2024 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2024, Bangkok, Thailand, 24/12/15. https://doi.org/10.1109/IEEM62345.2024.10857115

Imai T, Takeda F. Stock Price Reactions to Research and Development News on Pharmaceutical Companies in Japan. In IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2024. IEEE Computer Society. 2024. p. 1119-1123. (IEEE International Conference on Industrial Engineering and Engineering Management). doi: 10.1109/IEEM62345.2024.10857115

@inproceedings{84666c695c9b4abb99c7373a1ee14bb7,

title = "Stock Price Reactions to Research and Development News on Pharmaceutical Companies in Japan",

abstract = "This study examines the effects of research and development (R\&D) on the market value of Japanese pharmaceutical companies. Based on 1,345 news articles, our event study analysis of 74 Japanese pharmaceutical companies from 1 January 2010 to 31 December 2021 revealed three key findings. First, the stock prices of the aforementioned companies generally respond positively to the business news, and more specifically, R\&D-related news. Second, the impact on the share price is more pronounced as the R\&D progress to more advanced stages. Lastly, the stock price responses to R\&D news tend to diminish as the size of pharmaceutical companies increases.",

keywords = "company size, COVID-19, event study, market value, pharmaceutical industry, R\&D news, stock price reactions",

author = "T. Imai and F. Takeda",

note = "Publisher Copyright: {\textcopyright} 2024 IEEE.; 2024 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2024 ; Conference date: 15-12-2024 Through 18-12-2024",

year = "2024",

doi = "10.1109/IEEM62345.2024.10857115",

language = "English",

series = "IEEE International Conference on Industrial Engineering and Engineering Management",

publisher = "IEEE Computer Society",

pages = "1119--1123",

booktitle = "IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2024",

}

TY - GEN

T1 - Stock Price Reactions to Research and Development News on Pharmaceutical Companies in Japan

AU - Imai, T.

AU - Takeda, F.

PY - 2024

Y1 - 2024

N2 - This study examines the effects of research and development (R&D) on the market value of Japanese pharmaceutical companies. Based on 1,345 news articles, our event study analysis of 74 Japanese pharmaceutical companies from 1 January 2010 to 31 December 2021 revealed three key findings. First, the stock prices of the aforementioned companies generally respond positively to the business news, and more specifically, R&D-related news. Second, the impact on the share price is more pronounced as the R&D progress to more advanced stages. Lastly, the stock price responses to R&D news tend to diminish as the size of pharmaceutical companies increases.

AB - This study examines the effects of research and development (R&D) on the market value of Japanese pharmaceutical companies. Based on 1,345 news articles, our event study analysis of 74 Japanese pharmaceutical companies from 1 January 2010 to 31 December 2021 revealed three key findings. First, the stock prices of the aforementioned companies generally respond positively to the business news, and more specifically, R&D-related news. Second, the impact on the share price is more pronounced as the R&D progress to more advanced stages. Lastly, the stock price responses to R&D news tend to diminish as the size of pharmaceutical companies increases.

KW - company size

KW - COVID-19

KW - event study

KW - market value

KW - pharmaceutical industry

KW - R&D news

KW - stock price reactions

UR - https://www.scopus.com/pages/publications/85218048741

UR - https://www.scopus.com/pages/publications/85218048741#tab=citedBy

U2 - 10.1109/IEEM62345.2024.10857115

DO - 10.1109/IEEM62345.2024.10857115

M3 - Conference contribution

AN - SCOPUS:85218048741

T3 - IEEE International Conference on Industrial Engineering and Engineering Management

SP - 1119

EP - 1123

BT - IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2024

PB - IEEE Computer Society

T2 - 2024 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2024

Y2 - 15 December 2024 through 18 December 2024

ER -

Stock Price Reactions to Research and Development News on Pharmaceutical Companies in Japan

Abstract

Publication series

Conference

Keywords

ASJC Scopus subject areas

Access to Document

Other files and links

Fingerprint

Cite this